tv Erin Burnett Out Front CNN November 29, 2012 8:00pm-9:00pm PST
our commitment has never been stronger. that does it for this edition of "ac 360." erin with outfront starts right now. breaking news, we'll find out this hour what the white house put on to avoid the fiscal cliff and the gop's reaction. plus, the u.s. votes no. the legal ramifications for israel are not insignificant. and month ago, doctors say a woman died after they refused to
perform an abortion. let's go "outfront." good evening. i'm erin burnett. details just coming in. jessica yellin, our chief white house correspondent has them. what have you learned about what geithner listed out what the numbers and put on the table? >> he put out a number of $1.6 trillion in new taxes. that was, according to republican officials, a surprise. they expected a much smaller number and that has republicans crying foul.
additional spending on medicare to pay doctors, protecting middle income americans from a tax hike. $50 billion in stimulus. and in return $400 billion in medicare and other savings next year and an agreed mechanism for allowing a vote on a debt ceiling increase republicans are not at all pleased with this, publicly crying foul. the white house has said that they have signed into law $1 trillion into tax cuts next year and will rg to compromise on more. bottom line, most sides seem more dug in than they did before, erin. >> certainly a day that was pretty grim on that front.
thanks very much and that 1.6 trillion, everyone, surprising republicans and a crucial number especially when contrasted with the 4 billion this entitlement cuts. i want to tell you the republican response as jessica indicated. they didn't want anything to do with geithner's plan. yesterday, john boehner moved the markets higher. it was joyful talk about a possible deal, but today, it was like a break-up over tax. he went from love to disgust. here he is right after tim geithner put that deal on the table. >> no progress has been made in the talks between the white house and the house over the last two weeks. >> all right. that's pretty grim. stocks lost early games on that news and the day went downhill. harry reid slapped back. >> still waiting for a serious offer from the republicans. >> so they agree on something. no progress. but then it actually went beyond that. reid got a little personal. >> i don't understand his brain so you should ask him, okay? >> funny, but really not so
funny. so what happens when the men in charge start throwing sand in the sand box? we just go over the cliff like some are now suggesting? recall what erskine bowles said two weeks ago. >> i think that's crazy. you know, why would you bet the country? really bet the country by going over this fiscal cliff. >> crazy? betting the country? well, according to the congressional budget office, bowles has a good reason for saying what he did. the economy would go into a recession, economic output would drop and unemployment rate would go back up to 9.1% by the end of next year. now, the clock is ticking. john and harry, get out of the sand box. 33 days are left. peter difazio of oregon is "outfront" tonight. let me just get a response from you about timothy geithner's plan that he put on the table.
1.6 trillion in revenue. $400 billion in cuts. i'm a little confused because the president said he will give $2.50 in spending cuts for every dollar in revenue. this is, this is the opposite. >> well, finally, the white house has learned not to negotiate with itself, but with the opposition, which is the republicans. remember, there is no real cliff. on january 1st, the only thing that goes away is the social security tax holiday and nobody is seriously talking about continuing that. all the other tax increases don't take place until sometime around march. gives congress plenty of time to rekrit them, but that's $4 trillion of additional revenues. so okay, we're going to cut that more than in half. that will probably mean reagan era rates on capital gains. clint era rates on higher income people and you're getting close to $1.6 trillion, so i don't think it's that unreasonable and the key thing he put forward today and i'm pleased because i've been raising this for more than a month.
we need to put people back to work in this country and if we funded a robust transportation infrastructure bill as part of this package and put a couple of million people back to work, a lot of the deficit goes away. >> didn't they say that last time? >> i didn't vote for that and the word stimulus is totally discredited. it did not -- 7% of that bill was investment and infrastructure. 42% was tax cuts. we've been trying tax cuts for more than a decade. they don't put people back to work. real investment does. we have report after report, economist after economist, real investment will put millions of people back to work. >> right. those were tax cuts of the vast middle in this country. what you want to extend and the republicans. i'm still confused. if the president wants $1.6 trillion in revenue and is going to do his math, that's $3 trillion in cuts. why only put 400 billion out? >> well, he's probably leaving himself a little room to
negotiate. >> a little. >> is reasonable on medicare. if he just started negotiating lower drug prices, that saves medicare $230 billion over ten years. and then you deal with some of these high cost private insurance plans under medicare and a couple of other minor changes that won't hurt average american, won't make them wait until 67 to get medicare, we could get the 400 billion there. >> when the president earlier had talked about medicare, not today, but before, he has said yes, i support raising the age on medicare from 65 to 67. simpson bowles talked about raising the age. most people do and say that's really going to be the only way to get out of this. you really think we don't have to make real changes or is that just, i understand your constituents don't want you to say anything. >> that doesn't teal with the cost of prescription drugs. >> fair. >> with overpriced and
unnecessary medical care and finally, if we did extend the age to 67? guess what? they'd have to go to the obama exchanges and with low incomes and get subsidies there to buy private insurance which probably in the end would be more expensive than medicare, so actually, you would just move from here to here and you might even increase the deficit. >> interesting point, but i still find it a little bit hard to believe. when you say we don't have to make substantive change to a program that's going to consume all of our federal spending if we keep going the way we're going, we do need to make substantial changes. it's going to hurt. >> i didn't say that. i'm part of the quality health care coalition. we want to move to out space medicine. we want every state to be as efficient as my state and 16 other states who provide care at about the third of the cost of florida and fourth of the cost of new york. we need to rationalize the system across the country and go to those states that are wasting
a bumpbl of money and make them more efficient providers. we need to negotiate the prescription drug prices saving a quarter of a trillion dollars and you know, we need to reign in these private health insurance plans that are living off medicare. those are real changes. >> all right. let me ask you this though. you said there is no cliff. cbo says there's a cliff. it doesn't all hit on day one. but the fact of this country and you guys in washington not being able to get a deal done just the atmosphere, the frustration and the fear that could create, how can you say that's not a cliff? >> well, a lot of hysteria out there, but again, the fact is only the social security tax holiday goes away. the withholding tables don't change. no one's taxes go up in january. the cuts through sequestration don't go into effect immediately and i would hope congress would
make discrete cuts instead of stupid across the board cuts so we would have time to get to work on january 3rd and deal with restoring tax benefits to working families and deal with a more discrete way of spending. >> and you would be willing to take it if the market reacted incredibly negative, you think all of that is manageable? >> i'm not sure why that would happen because, you know, wall street is very good at manufacturing hysteria. i opposed the t.a.r.p. bailout. they can only manipulate it so far and then there's real value there that will come back. >> oh, i wish that we could talk about t.a.r.p. let's do it another time, can we, because i think that would be a fascinating conversation. outfront next, this could open the door for palestine to charge israel with war crimes.
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our second story out front, victory for palestinians. the u.n. general assembly voted in favor of palestinian state hood. we want to show you the wild celebrations going on right now. this is the west bank. after the u.n. overwhelmingly gave the palestinians something they have wanted for years and the vote was pretty overwhelming. 138 countries in favor. it was a shellacking for those against it. the resolution passed against the will of the united states, israel, canada and six other nations. here's u.n. ambassador susan rice after the vote. >> today's unfortunate and counterproductive resolution places further obstacles in the path to peace. that is why the united states voted against it.
>> now, the vote gives the palestinians a higher profile at the u.n. and more important, it also means they can join organizations like the international criminal court. that is important because it could allow the palestinians to pursue war crime charges against israel. "outfront" tonight, the prime minister. good to see you again. so what does this vote mean for israel? >> it doesn't mean anything. i think it means resolution because if you'd like to get the sate, it should be on negotiations. they've got a good support of one country, israel. and they would get it only if the will is negotiations. what's happened today is that the community gave them a mandate -- between the palestinians because according to the conference, it says they're very clear that no one can take a unilateral move and they took the unilateral move against the will of israel and i think that if you don't respect
their signature or agreement, they would keep the agreement, it would be made, be given and that's what we can't stand. >> they've wanted decades to have a two-state solution and israel, you say you want one, but keep saying there's negotiations, but don't get one, so they feel this is their only way. >> no, because they can get any resolution at the u.n. i want to mention and to remind you, in 1988, in 2008, that very similar. what does it mean? they got the state.
they can get the state from negotiations. they did everything to prevent negotiations. turn to netanyahu and ask him to accept the idea of two-state resolution. to freeze the settlements. still didn't show up, but not om us, our predecessors negotiated for a very long time. 98.5% of territories and still didn't get an agreement. >> all right, all this may be true, but the countries in the middle east that recognize you all voted for this. it was only nine countries. the united states was alone. italy, france, they voted for palestine. does today's vote worry you that okay, it's you and the u.s., but the u.s. has lost power and influence. israel's losing power and influence. >> most in arab countries and those from the third world without always against israel. >> italy, france. >> okay, so italy, france and others joined in. because they filled it after the declaration is very poor -- to helping, encouraging to
strength. the only way to do it is slow negotiations. and negotiations means to give and take. not willing to take any kind of -- if they were glad to come, they can find us willing. >> you talk about how why some of the european countries might have voted for this, but you know, everyone said that hamas gained a lot of power. hamas doesn't recognize your right to exist. the plo does. abbas. is it possible the win today gives him a boost? that this is something that is good for you? >> first, it raised the question if he represents the whole palestinians or only half of
them. only the west bank as you have just mentioned. hamas don't recognize the right of israel to exist, so what we are dealing with here is the palestinian people. that's first. the second thing is more important. they are violating their signature with israel. it makes those that are opposing the peace process in israel and in the arab world much more powerful because they always tell us, don't believe the palestinians. they will never, never implement their commitments and they show us once again that we are committed not to make a lateral move. we'll negotiate for the final status agreement. unfortunately, those that oppose the idea to them was the palestinians become more powerful and the community helped them to accept or to convince the israel public opinion that there is no one for us. >> thank you very much. we appreciate your coming on. it was a big day today on that
vote. our third story out front, allegations of abuse. private bradley manning took the stand in his own defense today. he's charged in the largest leak of classified material in history. he's accused of stealing thousands of military and state documents that ended up on week key leaks. manning says he suffered abuse when he was confined to a marine brigade for nine months. i spoke with julian assange about manning. >> the case is about abuse of bradley manning. over a nine-month period bradley manning was abused. why was he treated that way? his lawyer argues and many others argue that it was in order to coerce him into a confession that would bring down me or bring down week key leaks. >> the pentagon has maintained that manning was held with rules
for all maximum custody detainee. if convicted, he could get life in prison. chris, let me just ask you, manning and his defense team have been claiming that the private was held in harsh conditions. here's a quote from what he said today. he said, quote, i'm going to die. i'm stuck inside this cage. i had pretty much given up. my world had just shrunk. what else was in his testimony? >> well, he was very calmed. he was very composed. he was dressed in his dress blues and he described what it felt like in that first prison back in kuwait which he described as a black alond lone hole. then he was sent to quantico. we heard a lot of description about what it was like for him under that sort of confinement, erin. >> manning argues that keeping
him in maximum prison was proper circumstances, this was espionage, something that could get the death penalty, even though they are not going for that. did they make that case? >> they are. they say, look, at the time, he was a maximum security detainee who posed a threat to himself and others. but today what we heard on the stand was manning maybe giving some different perspective to some of those incidents. he said the guards looked at him and there was some concern because he was playing peek-a-boo with himself in the mirror or dancing to music where there was no music playing but he said it was out of sheer boredom. he wasn't allowed to lay down during the day. there was nothing to do in that 6 by 8 windowless cell for 23 hours. so he used himself to sort of keep himself occupied. and we also heard some chinks in the government's case, so to speak, because the marine commander of that base has testified that he he was telling
his higher ups back here at the pentagon, right from the get-go, that quantico was no place that they keep manning there long term. he ended up there for three times that long. a doctor was repeatedly advising the doctors that he should be taken off suicide watch when manning was kept on for quite some time. >> thanks, chris. 33 days away for the fiscal cliff and another republican defies grover norquist's tax pledge. kevin yoder is "outfront" to describe why he did it. and a woman died after doctors refused to perform an abortion. the woman's husband is here next. but, um, can the test drive be over now? head back to the dealership? [ male announcer ] it's practically yours. but we still need your signature. volkswagen sign then drive is back.
at an iranian military site. a site that nuclear inspectors have been denied access to. here's what the site looked like in september. the roofs of the buildings are are covered with tarps. just take a look. now, we're going to fast forward it. switch the picture to november 7th. what you'll see now is that the buildings have blue roofs and new equipment on site. this is according to the am sis from sis. the think tank says additional things are being done to the site. a russian judge says performances by pussy riot should be removed from the internet. their most notorious video is the one that landed two band members in jail. in it, the band sings an anti putin song in a cathedral. the judge allegations it includes words that humiliate
various groups. and former president george h.w. bush has been in a houston area hospital for six days. a spokesperson says he has been treated and cured of bronchitis. bush is 88 years old and he is the oldest living former president of the united states. and an update now on the indian woman who went to an irish hospital for back pain and was told she was having a miscarriage. now, despite the circumstance, her husband praveen says doctors refused to abort the fetus because of ireland's strict abortion laws. she ended up dying of blood poisoning. now, praveen has decided to take the case to court because irish officials failed to adequately investigate.
and a bankruptcy judge has approved a bonus plan for hostess brands. the $1.75 million plan gives 19 executives bonuses ranging to $535,000. it has been 483 days since this country lost its top credit rating. what are we doing to get it back? from july through september, the economy grew by -- but it was in line with expectations. tim geithner putting a deal on the table. we told you the details at the top of the show. $1.6 trillion in taxes, extend unemployment and put the amt patch. home mortgage refinancing, $50 billion in stimulus. in return, he offered $400 billion in entitlement savings
and said, if you do this, we have to agree on a debt limit. you might say there's no way republicans are going to accept this. let's see. kevin yoder is a republican of kansas. he's "outfront" and member of the appropriations committee. what do you say to secretary geithner's bid? >> i don't think it's a serious proposal. it's not the type of balanced approach the president's spoken about and i don't think it's the type of thing that's going to get our economy going again. it's just not that type of balance the american people are looking for. whey too high on taxes. not nearly enough on spending reductions. >> the president has said all the way along, if i give you a dollar of revenue, if you guys give me a dollar of revenue, that's $3 trillion in spending cuts. he's coming in with 400, so would you try to get him to 3 trillion here or try to bring down the revenue number? >> well, i think you have to
bring down the revenue number. we are not going to tax and spend our way back into economic prosperity in this country. we are going to have to work together. i think most americans are tired of seeing the partisanship and debates. i'm pleased the speaker's up at the white house to find a solution. most people want certainty, long-term predictability in the economy and raising taxes for this amount i think would put us back into a recession and be counterproductive to get our economy going on. >> john boehner clearly, he's the key negotiator. are you going to agree to whatever deal he brings you, if he says representative yoder, it's $1.4 trillion in revenue. it's 1.4. do you say all right, i trust john boehner, i'm going with it? >> no, the speaker still has to sell it to congress, republicans and democrats. you're going to have to have a lot of input and a lot of effort to put together a bill that brings in a lot of party's
ideas. so certainly, whatever they come up with at the white house is going to have some public discussions. i'm going to talk to my constituents about it at home. the speaker's going to have to sell it still. the speaker has an attitude of finding a solution. he knows that a long-term solution is critical to getting this economy back on track and waiting until the end, the last minute is not our goal. we're trying to get this done soon. >> let me ask you something about revenue. everyone's talked about this pledge, right, to not raise taxes championed by grover norquist. he has become a household name this this country. you though are one of six house republicans plus seven in the senate who didn't sign the pledge. what made you, when you were given that opportunity and so many of your fellow elected officials signed it, what made you say no? >> it's not because i think we should raise taxes. it's because i believe my obligation to the constitution and to my district, they want an informed congressman trying to find a solution and if you fumble every option before you
get to goerpuation, you're not trying to work to the other side. i do know the president has said he'll veto any legislation that doesn't find additional revenue, so we've got to find a solution. going off the cliff is not an option. so i just think a lot of these pledges and all these things that ultimately it restricts our ability to work together and find solutions that will save the country. you can't foresee every situation. so i didn't think signing the pledge made sense and yet i still don't think raising taxes is the answer but ultimately maybe some type of revenue may be the ultimate bargain. i think the republicans and speaker are being very reasonable. i heard in the debate, so 10-1. okay, here's our one. the conversation is really now moving back from the revenue and moving towards the spending
reductions, where are the entitlement reforms. the speaker's trying to call the president's bluff. >> i think the republicans, they said they wouldn't even accept 10-1. good to see you. >> you know, as we said, kevin yoder there explaining why he's against the antitax pledge. he's one of the few and this issue of grover norquist tax pledge is pitting republican versus republican. threatened a run against saxby chambliss. now, you just heard kevin yoder make this case for look, i'm a republican, i don't want to raise taxes, but my duty is to the constitution, i want to do what's right so i'm not going to sign that pledge and sounds like people like you, i'm going to run against you, you got to be tougher. >> you know, i would go back to the clinton tax rates in a heart beat, but they'd have to give me
the spinning rates as well e. they're not doing that and no one's ever put that on the table. what we've got in washington are republicans and democrats both trying to pivot to be the more reasonable party in front of the american people. the republicans are going to get blamed no matter what they do. that's political environment. they might as well embrace the fiscal cliff. >> you heard peter difazio saying earlier in the program, democrat, go off the cliff, there is no cliff. no problem. >> folks on both sides. look, there's not a clip there and they're going to play chicken and go off. >> and then you're road kill at the bottom. >> that's exactly right. most folks are saying since the economy's improving, congress, don't screw it up and you get some folks on the far left and far right, there's no cliff, don't worry about this. we're after the election, this isn't an id logical debating society. this is about getting something done. let's work on a short-term deal. >> the deal that's there, we're in this situation because congress came up with what
they're calling the fiscal cliff now and they're calling it the fiscal cliff because they don't want to e embrace either the tax increases or spending cuts and i think it's foolish to think this congress can come up with a better deal. >> you know what's interesting, to eric's point, there is a great irony in this that the democrats are saying we've got to raise taxes and the fiscal cliff does both. just not in the way anybody wants it, so if they can't do that, how are they going to find a way they can all agree on? >> the superfailed committee. this is a giant hatchet as opposed to a scalpel. >> it was designed to fail. >> i agree, but the real solution and real irony is going to be the ultimate deal's going to look like the obama boehner grand bargain that was negotiated and almost done in the summer of 2011. the fact that we couldn't make that deal then i think's a tragedy for the country.
one of the thing's it did was lead to that aaa downgrading. that was unnecessary. >> let me just follow up on this point of what republicans should accept. you said you'd go back to the clinton era tax rates if you could get the spending that went with it. there are some in the republican party like congressman tom cole congress them saying let's just do that. let the rates go up for those at the top, then wait and negotiate. is there anything about that that you think could make sense? >> that's not a negotiation. the president's not going to then lower those rates. >> that might be a capitulation. >> yeah, it is a capitulation. the president thinks he's got all the cards. the republicans position improves at the beginning of the year and frankly, there are a number of people coming back, people who contributed to this mess and i'm not sure as a citizen i want them to be the ones who fix it. >> aren't they in a stronger position, democrats in january? >> which is all the more reason
to get this done now. and really not look a gift horse in the mouth. only in washington, congress, is an agreement on 98% of something not the grounds for making a deal. you've got 98% agreement on taxes. take that deal. don't go over the fiscal cliff. live to find another deal on a grand bargain. tax reform, entitlement. >> you really think democrats, they get that tax increase, that they're going to come and give spending cuts later. >> i think there are ways you can try to make it. eric's made a great point historically that things like ruddman, the spending cuts never end up happening. everyone who's realistic at the table recognizes you've got to have a balanced plan. serious cuts and revenue increases. you can't --
>> we've had 18 debt and deficit commissions since '81. the cuts never came. >> cynicism isn't a plan though, eric. we need to put forward a plan. can't just keep saying they're screwing it up. >> if you don't put cuts in though with tax increase, you've got a problem because it's easy to raise taxes on a few people. most people will not support cuts that hurt them. >> you've got to have entitlement reform. >> you can actually lower rates, close loopholes and raise revenue. >> all right. thanks to both. appreciate it. more than two months after the deadly attack in benghazi, investigators are still looking for answers and today, the fbi turned to facebook for help and a possible turning point in syria. the obama administration tonight weighing whether to take a big step and involve arming the rebels. ded it. and that makes me feel pretty good about it. and then i heard about a study looking at multivitamins and the long term health benefits. and what do you know? they used centrum silver in the study. makes me feel even better, that's what i take. sorry, we take. [ male announcer ] centrum. the most recommended. most preferred. most studied.
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nick paton walsh is in beirut and i asked him about the deteriorating situation in syria. >> reporter: two dramatic developments today. first, the communications blackout across the country. the internet down along with most cell phones perhaps done by the regime to stop communications with the outside world about their successes, perhaps suggesting a crisis at the heart of damascus' ruling elite. damascus international airport, flights canceled from there. reports of clashes nearby. two austin ran peace keepers likely wounded. that vital symbol on the outskirt of the capital clearly under threat at the moment and after months of stalemate, signs of real change and movement on the ground.
it's been 80 days since chris ambassador was killed. so now why is the fbi saying that they are going to use facebook? today they say, after all this time, they are going to ask for help for tips via facebook to help them in this investigation. is this -- are we reading too much into it or is it a sign that they don't have too much to go on? >> the fbi has solved cases of international terrorism and always takes old-fashion investigative methods. shoe leather, sweat, time. the patrolling of tips on facebook and twitter, sounds pretty ridiculous. >> it does. why would they be doing that, do you think? >> let me ask you this. if you knew something about a case of murder or terrorism and the fbi asked you for
information, would you post it on the internet? this is a job for the cia. >> they waited three weeks until they visited the compound on october 4th because of security concerns. they said they weren't going to put agents in harm's way. they were worried. cnn went to the compound before and found the ambassador's journal. would the evidence have been compromised. what the fbi needs is many informants. in the old days, they would want to put up a wanted poster. you can put it up on the internet now. what would break a case like this is money.
>> one would hope they are on the case. obviously this is a case of extreme sensitivity and ambassadors don't get killed every day or every year and it was a bungle. it was, you know -- >> are they working together, do you think? >> oh, gosh. >> especially now, you have petraeus losing his spot at the cia, and that's a recent case that happened. and throughout the 65-year history of cia, they have often been at each other's throats and not cooperative. >> how much pressure is the fbi under to get this right? >> there's a dead american ambassador and three other dead americans in a case of murder, possibly terrorism. it can take decades to break a case like this.
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representing finosa. a big bird to russia. it was just one big problem. gas natural finosa didn't know anything about it. it turns out that he doesn't actually work for that company. he's the bold gentleman in this shot. take a good look at this guy. we actually don't know what his real name is. it appears he's a con man who was able to get through multiple rounds and rounds and rounds of negotiation and a televised appearance for a billion dollar deal without detection. i mean, that's kind of incredible. you have got to give the guy that. in fact, on the surface, this seemed like a mirror image of one of the most infamous swindles in history, when victor lustig sold the eiffel tower to
two company. years later, he even pulled a scandal on al capone. yes, he swindled al capone out of $5,000 in money. how's that for inflation in that takes a lot of brass and a lot of smarts, which is something that our new con man didn't have enough of because it seems that the mystery man didn't actually ask for any of the billion dollars or his cut up front. he leaves with presumably nothing. he didn't even get any cash. thanks so much for watching. "piers morgan tonight" is next. with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro.
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